Banca Monte dei Paschi di Siena SpA rose the most in six weeks after la Repubblica reported that Italian Prime Minister Matteo Renzi is pressing other lenders to consider a takeover of the country’s third-largest bank.
The shares climbed as much as 13 percent and were up 7 percent to 61.6 cents in Milan trading as 10:15 a.m. on Monday. That cut’s this year’s loss to 47 percent, compared with a 12 percent decline of the Europe’s 47-member Stoxx 600 Banks Index.
Italy’s government sees Intesa Sanpaolo SpA and state-owned Cassa Depositi e Prestiti as possible buyers along with some Italian foundations, the newspaper wrote Monday, without saying where it got the information.
“Finding a partner for Monte Paschi will continue to be a challenging task as long as the amount of deteriorated exposures is not curtailed,” analysts at Mediobanca led by Antonio Guglielmi, wrote in a note on Monday. “The current concern about a potential resolution of Monte Paschi and the consequent systemic risk for Italian banks is over-emphasized.”
Chief Executive Officer Fabrizio Viola is seeking to restore profitability and bolster the bank’s finances by reducing risk and selling assets. After tapping investors for funds to replenish capital, Viola has been seeking a buyer as he faces pressure from the European Central Bank.